The Cotton Corporation of India (CCI), which procured nearly 20 lakh bales of cotton at the beginning of the current cotton season at minimum support price, is expected to release some quantity into the market soon.
According to an official source, the CCI is expected to release two lakh bales of cotton in the domestic market.
B.K. Mishra, Chairman and Managing Director of the CCI, who did not specify the quantity, told The Hindu over phone that modalities of the sale in the domestic market were yet to be finalised.
The CCI had also sought approval from the Ministry of Textiles for export of 10 lakh bales.
Trade sources here said that most of the cotton purchased by the CCI was from Andhra Pradesh. The price of the varieties grown in the State was Rs. 40,000 to Rs. 41,000 a candy on Tuesday. Cotton purchase by the domestic mills and exporters was sluggish and price of the widely used Shankar-6 variety of cotton was between Rs. 38,000 and Rs. 38,500 a candy.
Though purchases were low and the CCI norms for purchase might be tough, release of cotton by the corporation would ease the price.
The textile industry has been seeking release of the entire quantity of cotton procured by the Government agencies into the domestic market so that cotton prices would do not shoot up.
